Michigan

Seat Side Service founder and CEO Barak Leibovitz gives a presentation about his company. Seat Side Service is in talks with more than 40 venues to bring its services to entertainment platforms nationwide.
(Courtesy of Seat Side Service)

A few years ago during a Detroit Tigers baseball game at Comerica Park, University of Michigan graduate Barak Leibovitz found himself in a situation that many before him have probably encountered.

He wanted a cold beer and some food from the concession stand, but he didn't want to miss any of the baseball game.

"He pulled out his phone and opened the Detroit Tigers app assuming he could order his concessions, pay for a beer, and either have it delivered or go pick it up, but of course he couldn't," said Neil Zemba.

Fast forward three years, and Leibovitz seems to have solved the problem for himself and other fans by creating Seat Side Service.

Seat Side Service is a payment platform that gives customers at entertainment venues the chance to order concessions and merchandise directly from their mobile devices and have it delivered to their seats.

The platform includes mobile iOS and Android applications supported through cloud-based backend software.

"We have no infrastructure cost whatsoever in implementing this system. Everything is web-based and it's a mobile (point of sale) system, or we can integrate with a venue's existing POS system," said Zemba, the COO of Seat Side Service.

"We don't require any new staffing for implementing this platform. We just launched earlier this spring and signed our first platform with the Toledo Mud Hens."

The Seat Side Service app is available for iOS and Android devices.Courtesy of Seat Side Service

The relationship with the Mud Hens has proven to be lucrative, Zemba said, as it has helped vendors target and increase their sales, and early trends have shown that customers who use the app spend 44 percent more on concessions than the average customer who doesn't use it.

"We're talking to about 40 to 50 venues, major league, minor league and college teams right now. We're targeting minor leagues teams because they're the farm teams of larger organizations, so we're trying to build a network of venues right now. We want to go into major league service, so we're building that network of venues."

Seat Side Service spokeswoman Claire Hillman said the company can make money in various ways depending on the what the client prefers.

"Currently at Fifth Third Field in Toledo we have a transaction fee that is calculated at around 10 to 15 percent per order. However, with other venues we have discussed a set annual contract, advertisements within the app, or a combination of different options," she said.

"Our adaptability with different venues allows us to be flexible with the different preferences of venue owners."

Zemba said the company serves as a supplement to the typical hawkers who walk up and down the aisles selling peanuts, popcorn, hot dogs and beer.

"We figure that our product will allow stadiums to cut down on hawkers by about half, but those people wouldn't be without jobs. They'd be the ones delivering Seat Side Service orders to people's seats," he said.

The company recently entered into a partnership with Michigan company General Sports & Entertainment. GSE has clients ranging from the Derby Country Football Club, the Professional Golf Association, the Fort Wayne Wizards, Porsche of North America and Clear Channel Airports. Seat Side's founders hope the relationship will help expand its reach and help it penetrate other markets.

One of the major problems the company has encountered so far is the issue of poor Internet connections inside of venues.

"The main hurdle, even though it's frustrating for us and there's not a lot we can do about it, is bandwidth, Zemba said. Venues with a lot of people using social media sites frequently have problems with connectivity.

He's optimistic, though, and said that lesser attended games in open-air parks are major reasons why the company targets minor league venues.

Also, leagues like the NFL are undergoing infrastructure upgrades that will subsidize Wi-Fi networks in their stadiums.

"The situation we noticed was that most of the stadiums out there are actually suffering with attendance and concession sales. Before, we looked at going to live events as something cool and an every once-in-awhile thing," Zemba said.

"Now, with all the extra camera views and the at-home experience enhanced so much, people figure they'll enjoy the game much better from their living room. We hope this gets more people into venues and that it will enhance the customer experience at these venues."

Seat Side Service was founded and operated by five University of Michigan students and has used the university's tech incubator, TechArb, to help develop and advance the product.